The following is the financial plan for Hass Irrigation Systems.
7.1 Break-even Analysis
The monthly break-even point is shown below, taking into account monthly running costs.
7.2 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 4971, Irrigation Systems, are shown for comparison.
The following is explanation of the plans divergence with industry ratio profile.
- Sales Growth and Profit Before Interest and Taxes: will be double the industry average because of the increased housing development in the Lake Charles area over the next five years.
- Short-term Assets: are higher than the average due the size of our start-up inventory.
- Long Term Assets: are below the industry average but will be more in-line after additional equipment is purchased which is planned during the fourth year of operation.
- Long Term Liabilities, and Expense of Sales: are higher than the industry average due to the start-up loan and the maintenance of a year-round staff.
7.3 Projected Profit and Loss
The following table and chart highlights the projected profit and loss for three years.
7.4 Projected Cash Flow
The following is the projected cash flow for three years.
7.5 Projected Balance Sheet
The following is the projected balance sheet for three years.